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2013 (11) TMI 1510 - AT - Income TaxPenalty u/s 271(1)(c) - addition on account of Deemed dividend u/s 2(22)(e) - whether amounts to concealment of income - Held that:- The assessee has taken the amount for meeting normal business transaction and travelling and other expenses - The assessee's explanation that the addition was on account of deeming provision of which he was not aware is sufficiently cogent - The assessee's contention that no material was suppressed - There was no malafide intention on the part of the assessee to evade the tax - It was an inadvertent error which was genuine and bonafide - Following Dilip Sheroff case [2007 (5) TMI 198 - SUPREME Court] - Mensrea was a essential requirement of penalty u/s 271(1)(c) - Following Hindustan Steel vs. State of Orissa [1969 (8) TMI 31 - SUPREME Court] - Even if a minimum penalty is prescribed, the authority competent to impose the penalty will be justified in refusing to impose penalty, when there is a technical or venial breach of the provisions of the Act, or where the breach flows from a bonafide belief that the offender is not liable to act in the manner prescribed by the statute - Decided against Revenue.
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